Key facts
- South Korea and the U.S. are continuing discussions on potential semiconductor tariffs.
- South Korea's Industry Minister Kim Jung-kwan stated that Seoul expects not to be disadvantaged compared to competitors in these talks.
- The U.S. Commerce Secretary previously mentioned a 'targeted' tariff policy for semiconductors.
- A joint fact sheet from November includes a U.S. pledge for tariff rates on South Korean semiconductors that are 'no less favorable' than terms offered to competitors.
- No timeline has been provided by the U.S. for the announcement of chip tariffs.
South Korea's Industry Minister Kim Jung-kwan stated on Thursday that discussions with the United States regarding potential semiconductor tariffs are proceeding under the understanding that South Korea will not be placed at a disadvantage compared to its competitors. This comes after U.S. Commerce Secretary Howard Lutnick indicated that the Trump administration is developing a "targeted" and "thoughtful" tariff policy for semiconductors.
Kim noted that during tariff negotiations in October, the U.S. had already committed to not treating South Korean semiconductors less favorably than those of its rivals. He expressed belief that the ongoing discussions are being held in this spirit. The minister also referred to a joint fact sheet published by Seoul and Washington in November, which detailed bilateral agreements on trade, investment, and security. This document included a U.S. commitment to offer semiconductor tariff rates for South Korea that would be "no less favorable" than terms potentially offered in future agreements covering a volume of chip trade at least as large as South Korea's.